It’s the Age of Data, Time to Incorporate a Data Monetization Strategy into Digital Transformation

Path to Data Monetization: Internal Focus

As mentioned, the internal focus looks at improving Operations and Organization. We can categorize internal initiatives into 2 areas:

  1. Cost Reduction — Data Monetization efforts leverage data to increase productivity or reduce consumption and waste (either of raw materials or low-value activities).
  2. Revenue Growth — For top-line growth, we leverage data to improve sales performance or reduce customer churn.

Pathway to Data Monetization: External Focus

The external focus explores new business models enabled by sharing data with Partners and Customers. Specifically, there are 3 types of new business models, progressing in levels of sophistication, value impact to customers, and, likewise, revenue potential:

  1. Data-as-a-Service (DaaS) — Data is sold to end customers or intermediaries who analyze the data for insights.
  2. Insight-as-a-Service (IaaS) — This business model takes to the next level by applying advanced analytics to the data to generate actionable insights.
  3. Analytics-enabled-Platform-as-a-Service (APaaS) — We apply proprietary algorithms to generate enriched data for customers via a self-service platform.

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Mark Bridges

Mark Bridges

I blog about various management frameworks, from Strategic Planning to Digital Transformation to Change Management. https://flevy.com